The International Chamber of Commerce is urging World Trade Organization members meeting this week at the WTO Ministerial Conference in Nairobi to conclude an information technology tariff elimination agreement, which ICC said in a news release Tuesday could inject up to $190 billion into the global economy. The tariff elimination deal would be the first completed in nearly 20 years. ICC wants expanded product coverage under the WTO Information Technology Agreement 2, and continued absence of customs duties on e-commerce. "Despite standstills in negotiations technology and high-tech, products have continued to develop at a rapid pace, along with the business and organizational models that rely on them to thrive,” said ICC Secretary General John Danilovich. “The WTO ministerial is a real opportunity to make progress on this element of the global trade agenda that would reap the benefits of the digital economy and create significant boosts to international trade."
Data collection requirements for importers of FCC-regulated goods are unclear for June-December next year, Intel told members of the commission's Office of Engineering and Technology in a Thursday meeting, the company said in a filing posted the next day in docket 15-170. The FCC recently said it plans to waive its Form 740 certification requirements for RF devices imported between July 1 and Dec. 31, 2016 (see 1510190056). Intel "recommended that the FCC not require collection or reporting of the information contained in Form 740 either during or after this period" and should rely on existing Customs and Border Protection processes for the data collection. The company "stressed importers should have the flexibility to manage their own records and develop internal controls for monitoring noncompliant devices." Industry responses on doing away with Form 740 were largely positive, though Boeing noted it considers the government collections of the information to be a useful compliance tool (see 1510140028). The company also supported FCC-proposed changes to rules for approval and certification of RF devices (see 1412310022). Intel recommended the FCC continue work to accommodate new technologies and "define conditions and certification methods to allow approved modular radios to be used irrespective of the end host," which would benefit the IoT industry.
CompTIA commended passage of a transportation funding bill that includes provisions extending the charter of the Export-Import Bank through Sept. 30, 2019, said a news release Friday. "U.S. high tech manufacturers face stiff competition from foreign competitors that enjoy much greater support from their nation’s export credit agencies," said Executive Vice President Elizabeth Hyman. "Many companies in the U.S., including a significiant [sic] number of small businesses, leverage Ex-Im to engage in business opportunities all over the world."
Cisco and Motorola Solutions see FCC equipment authorization rule changes as positive overall, but identified some concerns, including challenges with implementation and mutual recognition agreements (MRAs). "Generally, the changes to the FCC's [equipment authorization] processes have been helpful," said Chuck Powers, Motorola Solutions director-engineering and technology policy, during an FCBA CLE Thursday. "Leveraging the [telecom certification bodies] for all FCC certifications speeds up the process for manufacturers," which is beneficial for everybody, he said. But Powers said Motorola has had to take into account that the FCC's changes have essentially made MRAs a de facto requirement for testing of devices developed outside the U.S., at least for the foreseeable future. MRAs can make trade easier, but they aren't as ubiquitous globally as they should be, said Powers: "There are certain countries that [MRAs] are missing from that the passing of this [FCC] order has created a problem for us." David Case, Cisco technical regulatory leader, said the rule changes on authorization have been "very positive overall," and allow a more streamlined manufacturing process -- something he said the company looks for. Case said the rules do tend to put manufacturers "behind the eight ball" because of the costs it takes to update certain labs for authorization. Case also said MRAs have essentially leveled the playing field against competition overseas. Tim Brightbill, a Wiley Rein trade lawyer, said FCC rules eventually will have to pass muster with trade rules set forth in the Trans-Pacific Partnership, which is awaiting congressional review.
Saxon Glass Technologies asked the International Trade Commission to issue a limited exclusion order banning imports of an Apple smart watch due to trademark infringement. Saxon’s Tariff Act Section 337 complaint said the Apple Watch Sport’s Ion-X strengthened glass infringes and dilutes Saxon’s own Ionex mark. Saxon seeks a limited exclusion order and cease and desist order banning importation and sale of infringing Apple smart watches. The ITC now seeks comment by Nov. 25 on public interest issues raised by the complaint, the agency said in a notice in Tuesday's Federal Register. Apple didn't comment Wednesday.
Final approval of the Trans-Pacific Partnership may not happen for years, a member of the Republican Senate leadership told reporters Tuesday. The deal involves many provisions on telecom, data transfer rules and copyright. “There’s a pretty big school of thought this is not going to happen on this administration’s watch, that it’ll be a 2017 issue,” said Sen. John Thune, R-S.D., third-ranking member of GOP leadership and chairman of the Commerce Committee. “I think there are objections on both sides of the aisle, Republicans and Democrats, for very different reasons. But that’s going to make it I think fairly difficult to thread the needle. We have six years to do it, probably better sooner rather than later.” The trade deal involves several different nations, and the Obama administration released the text of many chapters last week (see 1511050058). President Barack Obama can sign the deal 90 days after the release. That signature would then set up a subsequent period of congressional review. Hillary Clinton and Sen. Bernie Sanders, I-Vt., the front-runners for the Democratic nomination, oppose the deal, as does real estate developer Donald Trump, vying for the GOP nomination. The digital economy is one of the two areas Thune is “most interested in,” he said, saying he and his staff will be “probably very focused on the digital economy” in addition to agriculture issues. He didn’t say how he would eventually vote when the deal comes before Congress. “If we’re going to do it, I think it’s always better to get these new provisions in place that open up access to a lot of our producers and businesses to markets that they don’t have access to today,” Thune said of potentially moving to enact the deal sooner rather than later.
AT&T and the International Intellectual Property Alliance praised Trans-Pacific Partnership language, in separate statements Friday. The Obama administration released major portions of TPP’s full text Thursday (see 1511050058). TPP “brings higher standards and protections to countries that represent nearly 40 percent of the global economy,” AT&T Senior Executive Vice President Jim Cicconi said in a statement Friday. “It will open markets, and establish rules of the road for a 21st Century digital economy. The e-Commerce commitments in TPP also provide a benchmark for reference in future trade agreements.” AT&T hopes for ratification soon, Cicconi said. IIPA said it still needs to review TPP’s full text but said IP language in the treaty “is built on the recognition that the creative sector makes an enormous contribution to the U.S. economy, jobs, and global competitiveness, and that further opening the markets of our major trading partners in this sector must be a top national priority.” The treaty's IP section “also contains important provisions aimed at expanding digital trade in creative materials, an increasingly critical sector where U.S. creators face both serious challenges and exciting opportunities in reaching new markets around the world,” IIPA said.
The FCC published a notice in Thursday's Federal Register on the agency's plans to waive, effective Dec. 7, its Form 740 certification requirements for RF devices imported between July 1 and Dec. 31, 2016 (see 1510190056). The temporary waiver allows time for the FCC to consider its proposal to eliminate importer declaration requirements entirely (see 1507210072), without imposing new burdens once the use of Customs and Border Protection's automated commercial environment filing system becomes mandatory for FCC-regulated imports is required, the FCC said.
The Information Technology Industry Council told the Office of the U.S. Trade Representative Wednesday that increasing data localization practices by foreign governments threaten U.S. and global economic growth. In ITI's comments on the National Trade Estimate Report on Foreign Trade Barriers (NTE), the group said members have "experienced a significant increase" in the use of localization measures across the globe. Data localization is the practice of governments employing measures to favor local businesses and enterprises primarily in the information and communications technology space, which ITI said can be done "under the guise of promoting local industries and protecting privacy." These practices have "forced [ITI member companies and others] to make costly adjustments to their operations on the ground, regionally or globally, in order to comply with these measures," ITI said. It identified localization requirements in China, Indonesia, Nigeria, Russia, Turkey and Vietnam, and warned it's possible more governments will consider or put in place similar requirements by the time the USTR's NTE is published. "ITI is greatly concerned about the impact of such digital protectionism on international trade and investment, innovation, and the ability of people and businesses all over the world to benefit from free and open flows of information and data through the Internet and Internet-based technologies," it said. ITI recently released a blog post citing Indonesia's need to address localization practices in order for it to join the Trans-Pacific Partnership (see 1510280075). The public comment submission period for the USTR report ended Wednesday, but comments were only being made available by those who filed them, not the government. “As Internet services become a greater part of the global economy,” it will become “more important to monitor digital trade barriers,” the Computer & Communications Industry Association said in comments. CCIA detailed how recent moves "to restrict online information for alleged copyright reasons violates current trade agreements"; how Internet censorship has affected countries in Asia, the Middle East and Russia; and problems companies face following the European Court of Justice’s ruling earlier this month that declared the U.S.-EU safe harbor agreement invalid, in its comments. “As the economy evolves, the NTE will need to increasingly investigate and respond to barriers to digital trade if the Internet and Internet-enabled services are to continue to be export growth leaders,” said CCIA CEO Ed Black in a news release.
Indonesia will need to address certain localization practices, especially in the information and communications technology (ICT) sector, to join the Trans-Pacific Partnership (TPP), Information Technology Industry Council (ITI) Global Policy Director Ed Brzytwa said in a blog post Wednesday. Indonesian President Joko Widodo met with President Barack Obama Monday and expressed his interest in joining the TPP. Brzytwa said Indonesia tends to favor local companies and industries over foreign competitors in the ICT space and will need to change certain practices, including a new data localization requirement, to join the TPP. "The data localization requirement will impose higher costs on local companies, especially on small and medium sized enterprises," wrote Brzytwa. "It will also raise costs for U.S.-headquartered companies operating in Indonesia, as well as Indonesian businesses and consumers, undermining Indonesia’s global and regional competitiveness." ITI would "strongly support" including an affirmative statement in Indonesia's Digital Economy 2020 vision that it will avoid and roll back all forced localization measures, Brzytwa said. ITI will engage with Indonesian officials to find more trade and investment friendly approaches in order to meet its objectives, he said.